Struggled to hold earlier recovery gains,.....>

CABLE: Struggled to hold earlier recovery gains, the rate having touched an

early Europe high of $1.2688 with the eventual corrective pullback finding

support at $1.2554 as sterling took its directional cue from risk, via equity

market reaction to the reported increase in COVID-19 cases in parts of the US,

with Beijing moving parts of the city to level 2 due to recent outbreaks there.

These reports provided a counter to the release of strong US retail sales, as

well as reports of positive tests concerning a steroid that could cut fatalities

in COVID sufferers. However, the move down in sterling trailed the stronger

downside react in EUR/USD which in turn allowed EUR/GBP to break back below its

10-dma, negating the recent bullish outlook. Cable edged higher after the Europe

close as it tracked the late recovery in US equities, trading back around

$1.2600. 

- UK CPI to be released Wednesday at 0700BST.